Husbands’ Wages and Married Women's Labor Supply in Urban China

This study examines the impact of husbands’ wages on their wives’ labor force participation rates and hours worked in urban China from 1995 to 2018. We find that an increase in husbands’ wages reduces the labor force participation rate of married women with similar education levels. Controlling for gender identity—in particular, an aversion to the wife earning more than her husband—makes the income effect of husbands’ wage increase stronger. We find that the labor supply effect of husbands’ wages is more significant for women of younger cohorts, with less education and with more children. The employed women’s hours worked are negatively correlated with their husbands’ wages, which is more significant for married women of older cohorts and with more children. This study helps us better understand the trend of the female labor supply in urban China and sheds light on the impact of gender identity, welfare inequalities across families, and the well-being of households facing economic shocks